Why Cava stock plummeted 18% this week

Financial Performance - Cava's shares experienced a significant decline, falling 18% this week and nearly 40% this year [1] - Second quarter revenue fell $5 million short of analyst expectations, reporting $2806 million compared to the forecast of $2856 million [3] - Same store sales grew 21% in the second quarter, below Wall Street's expectation of 61% [2] - Cava adjusted its same store sales growth forecast to 4-6%, down from the initial expectation of 6-8% for the year [3] - Net restaurant sales increased by 20%, primarily due to new restaurant openings [3] Industry Trends and Company Strategy - Cava is experiencing similar sales declines as other fast-casual chains like Chipotle and Sweet Green, reflecting consumer uncertainty [4] - Cava is investing in restaurant automation startup Hyphen to improve order accuracy and speed during peak digital hours [4][5]